Allison Transmission Announces Record Fourth Quarter and Full Year 2024 Results
Allison Transmission (NYSE: ALSN) reported record financial results for Q4 and full year 2024. The company achieved all-time high full year net sales of $3.2 billion, up 6% from 2023, and record diluted EPS of $8.31, increasing 12% year over year.
Key highlights include record full year net sales of $1.8 billion in North America On-Highway market, decade-high sales in Defense end market (+28%), and all-time high sales in Outside North America On-Highway market. Q4 net sales reached $796 million, with net income of $175 million.
The company returned value to shareholders through increased quarterly dividends, $250 million in stock repurchases (over 3% of outstanding shares), and $101 million debt reduction. For 2025, Allison projects net sales between $3,200-$3,300 million, driven by price increases, increased Tracked vehicle demand, and robust North America vocational demand.
Allison Transmission (NYSE: ALSN) ha riportato risultati finanziari record per il quarto trimestre e per l'intero anno 2024. L'azienda ha raggiunto vendite nette annue record di 3,2 miliardi di dollari, in aumento del 6% rispetto al 2023, e un utile per azione diluito record di 8,31 dollari, con un aumento del 12% anno su anno.
Tra i punti salienti si segnalano vendite nette record nell'intero anno di 1,8 miliardi di dollari nel mercato On-Highway del Nord America, vendite decennali elevate nel mercato della Difesa (+28%) e vendite record nel mercato On-Highway al di fuori del Nord America. Le vendite nette del quarto trimestre hanno raggiunto i 796 milioni di dollari, con un utile netto di 175 milioni di dollari.
L'azienda ha restituito valore agli azionisti attraverso aumenti dei dividendi trimestrali, 250 milioni di dollari in riacquisti di azioni (oltre il 3% delle azioni in circolazione) e una riduzione del debito di 101 milioni di dollari. Per il 2025, Allison prevede vendite nette comprese tra 3.200 e 3.300 milioni di dollari, guidate da aumenti dei prezzi, dalla crescente domanda di veicoli cingolati e da una robusta domanda di veicoli commerciali nel Nord America.
Allison Transmission (NYSE: ALSN) reportó resultados financieros récord para el cuarto trimestre y para el año completo 2024. La compañía logró ventas netas anuales récord de 3,2 mil millones de dólares, un aumento del 6% respecto a 2023, y un beneficio por acción diluido récord de 8,31 dólares, incrementándose un 12% interanual.
Los aspectos destacados incluyen ventas netas anuales récord de 1,8 mil millones de dólares en el mercado On-Highway de América del Norte, ventas en el mercado de Defensa en su nivel más alto en una década (+28%), y ventas máximas en el mercado On-Highway fuera de América del Norte. Las ventas netas del cuarto trimestre alcanzaron los 796 millones de dólares, con un ingreso neto de 175 millones de dólares.
La compañía devolvió valor a los accionistas a través de aumentos en los dividendos trimestrales, 250 millones de dólares en recompra de acciones (más del 3% de las acciones en circulación) y una reducción de la deuda de 101 millones de dólares. Para 2025, Allison proyecta ventas netas entre 3.200 y 3.300 millones de dólares, impulsadas por aumentos de precios, una mayor demanda de vehículos de oruga y una sólida demanda de vehículos comerciales en América del Norte.
앨리슨 트랜스미션 (NYSE: ALSN)은 2024년 4분기와 전체 연도에 대한 기록적인 재무 결과를 보고했습니다. 이 회사는 3.2억 달러의 연간 순매출 기록을 달성했으며, 이는 2023년 대비 6% 증가한 수치이며, 희석 주당 순익은 8.31달러로 12% 증가했습니다.
주요 하이라이트에는 북미 온하이웨이 시장에서 1.8억 달러의 연간 순매출 기록, 방산 시장에서의 10년 최고 판매 (+28%), 북미 외 온하이웨이 시장에서의 사상 최고 판매가 포함됩니다. 4분기 순매출은 7억 9600만 달러에 달했으며, 순이익은 1억 7500만 달러였습니다.
회사는 배당금 증가, 2억 5천만 달러의 자사주 매입(발행주식의 3% 이상), 1억 1000만 달러의 부채 감축을 통해 주주에게 가치를 환원했습니다. 2025년을 위해 앨리슨은 가격 인상, 궤도가 있는 차량 수요 증가, 북미에서의 견고한 상업적 수요에 힘입어 32억에서 33억 달러의 순매출을 전망하고 있습니다.
Allison Transmission (NYSE: ALSN) a annoncé des résultats financiers record pour le quatrième trimestre et l'année entière 2024. L'entreprise a atteint un chiffre d'affaires net annuel record de 3,2 milliards de dollars, en hausse de 6 % par rapport à 2023, et un bénéfice par action dilué record de 8,31 dollars, augmentant de 12 % d'une année sur l'autre.
Les points forts incluent des ventes nettes annuelles record de 1,8 milliard de dollars sur le marché On-Highway en Amérique du Nord, des ventes au niveau décadal dans le secteur de la défense (+28 %), et des ventes toutes catégories confondues sur le marché On-Highway hors Amérique du Nord. Les ventes nettes du quatrième trimestre ont atteint 796 millions de dollars, avec un revenu net de 175 millions de dollars.
L'entreprise a restitué de la valeur aux actionnaires à travers des dividendes trimestriels augmentés, 250 millions de dollars de rachat d'actions (plus de 3 % des actions en circulation) et une réduction de la dette de 101 millions de dollars. Pour 2025, Allison prévoit des ventes nettes comprises entre 3,200 et 3,300 millions de dollars, soutenues par des augmentations de prix, une demande accrue de véhicules à chenilles et une forte demande de véhicules utilitaires en Amérique du Nord.
Allison Transmission (NYSE: ALSN) berichtete von Rekordfinanzergebnissen für das 4. Quartal und das gesamte Jahr 2024. Das Unternehmen erzielte Rekordumsätze von 3,2 Milliarden Dollar im gesamten Jahr, was einem Anstieg von 6% im Vergleich zu 2023 entspricht, und einen Rekordgewinn je Aktie von 8,31 Dollar, was einem Anstieg von 12% im Jahresvergleich entspricht.
Hervorzuheben sind die Rekordumsätze von 1,8 Milliarden Dollar im Nordamerika On-Highway-Markt, dekadenhohe Verkäufe im Verteidigungsmarkt (+28%) sowie Rekordverkäufe im On-Highway-Markt außerhalb Nordamerikas. Die Nettoumsätze im 4. Quartal beliefen sich auf 796 Millionen Dollar, mit einem Nettogewinn von 175 Millionen Dollar.
Das Unternehmen gab den Aktionären durch erhöhte quartalsweise Dividenden, 250 Millionen Dollar an Aktienrückkäufen (über 3% der ausgegebenen Aktien) und eine Schuldenreduzierung von 101 Millionen Dollar einen Wert zurück. Für 2025 prognostiziert Allison Nettoumsätze zwischen 3.200 und 3.300 Millionen Dollar, die durch Preiserhöhungen, eine steigende Nachfrage nach Kettenfahrzeugen und eine starke Nachfrage nach Nutzfahrzeugen in Nordamerika angetrieben werden.
- Record full year net sales of $3.2 billion (+6% YoY)
- Record diluted EPS of $8.31 (+12% YoY)
- Strong Q4 net sales of $796 million
- North America On-Highway market sales up $223 million
- Defense end market sales increased 28%
- $250 million in stock repurchases completed
- $801 million operating cash flow for 2024
- North America Off-Highway sales declined $55 million
- Service Parts revenue decreased $33 million YoY
- Outside North America Off-Highway sales dropped $7 million
- Q4 Adjusted EBITDA decreased $7 million YoY
Insights
Allison Transmission's Q4 and full-year 2024 results showcase exceptional operational execution and market leadership. The record $3.2 billion in annual revenue, coupled with a 12% EPS growth to
1. Market Dominance: The North America On-Highway segment's record $1.8 billion in sales, driven by strong Class 8 vocational demand, reinforces Allison's market leadership position. The ability to implement price increases while maintaining volume growth indicates significant pricing power and brand strength.
2. Strategic Diversification: The Defense segment's 28% growth and record performance in Outside North America markets highlight successful market diversification. This reduces cyclical risk and opens new growth vectors, particularly in Asia where demand remains strong despite European softness.
3. Financial Strength: The company generated
Looking ahead, the 2025 guidance of
Of particular note is the company's working capital efficiency, with operating cash flow consistently strong despite growth investments. This financial flexibility, combined with strategic market positioning and pricing power, positions Allison well for sustained performance in 2025.
- Record fourth quarter net sales of
, leading to all-time high full year net sales of$796 million $3.2 billion - Record full year diluted EPS of
, up$8.31 12% year over year
David S. Graziosi, Chair and Chief Executive Officer of Allison Transmission commented, "Closing out the year, unprecedented demand for Class 8 vocational vehicles persisted in the fourth quarter of 2024, leading to record full year net sales of
Graziosi continued, "In addition to notable top-line performance across multiple end markets, Allison's full year earnings per share increased 12 percent from 2023 to a company record diluted EPS of
Full Year and Fourth Quarter Financial Highlights
Net sales for the year were
- A
increase in net sales in the North America On-Highway end market principally driven by strength in demand for Class 8 vocational and medium-duty trucks and price increases on certain products$223 million - A 28 percent increase in net sales in the Defense end market principally driven by increased demand for Tracked vehicle applications
- A
increase in net sales in the Outside North America On-Highway end market principally driven by higher demand in$16 million Asia and price increases on certain products, partially offset by lower demand inEurope
Net income for the year was
Net sales for the quarter were
- A 10 percent increase in net sales in the North America On-Highway end market principally driven by strength in demand for Class 8 vocational vehicles and price increases on certain products
- A 5 percent increase in net sales in the Service Parts, Support Equipment and Other end market principally driven by price increases on certain products
- An 8 percent increase in net sales in the Defense end market principally driven by increased demand for Tracked vehicle applications
Net income for the quarter was
Full Year and Fourth Quarter Net Sales by End Market
End Market | 2024 Net Sales ($M) | Year over Year Variance ($M) | Q4 2024 Net Sales ($M) | Year over Year Variance ($M) |
North America On-Highway | ||||
North America Off-Highway | ( | ( | ||
Defense | ||||
Outside North America On-Highway | ( | |||
Outside North America Off-Highway | ( | ( | ||
Service Parts, Support Equipment & Other | ( | |||
Total Net Sales |
Fourth Quarter Financial Results
Gross profit for the quarter was
Selling, general and administrative expenses for the quarter were
Engineering – research and development expenses for the quarter were
Net income for the quarter was
Net cash provided by operating activities was
Fourth Quarter Non-GAAP Financial Measures
Adjusted EBITDA for the quarter was
Adjusted free cash flow for the quarter was
Full Year 2025 Guidance
Allison expects 2025 net sales in the range of
Conference Call and Webcast
The company will host a conference call at 5:00 p.m. EST on Tuesday, February 11, 2025 to discuss its fourth quarter 2024 results. The dial-in phone number for the conference call is +1-877-425-9470 and the international dial-in number is +1-201-389-0878. A live webcast of the conference call will also be available online at https://ir.allisontransmission.com.
For those unable to participate in the conference call, a replay will be available from 9:00 p.m. EST on February 11 until 11:59 p.m. EST on February 25. The replay dial-in phone number is +1-844-512-2921 and the international replay dial-in number is +1-412-317-6671. The replay passcode is 13751140.
About Allison Transmission
Allison Transmission (NYSE: ALSN) is a leading designer and manufacturer of propulsion solutions for commercial and defense vehicles and the largest global manufacturer of medium- and heavy-duty fully automatic transmissions that Improve the Way the World Works. Allison products are used in a wide variety of applications, including on-highway vehicles (distribution, refuse, construction, fire and emergency), buses (school, transit and coach), motorhomes, off-highway vehicles and equipment (energy, mining, construction and agriculture) and defense vehicles (tactical wheeled and tracked). Founded in 1915, the company is headquartered in Indianapolis,
Forward-Looking Statements
This press release contains forward-looking statements. The words "believe," "expect," "anticipate," "intend," "estimate" and other expressions that are predictions of or indicate future events and trends and that do not relate to historical matters identify forward-looking statements. You should not place undue reliance on these forward-looking statements. Although forward-looking statements reflect management's good faith beliefs, reliance should not be placed on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements to differ materially from anticipated future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements speak only as of the date the statements are made. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise. These forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to: our participation in markets that are competitive; our ability to prepare for, respond to and successfully achieve our objectives relating to technological and market developments, competitive threats and changing customer needs, including with respect to electric hybrid and fully electric commercial vehicles; increases in cost, disruption of supply or shortage of labor, freight, raw materials, energy or components used to manufacture or transport our products or those of our customers or suppliers, including as a result of geopolitical risks, wars and pandemics; global economic volatility; general economic and industry conditions, including the risk of recession; labor strikes, work stoppages or similar labor disputes, which could significantly disrupt our operations or those of our principal customers or suppliers; the highly cyclical industries in which certain of our end users operate; uncertainty in the global regulatory and business environments in which we operate; the concentration of our net sales in our top five customers and the loss of any one of these; the failure of markets outside
Use of Non-GAAP Financial Measures
This press release contains information about Allison's financial results and forward-looking estimates of financial results which are not presented in accordance with accounting principles generally accepted in
We use Adjusted EBITDA and Adjusted EBITDA as a percent of net sales to measure our operating profitability. We believe that Adjusted EBITDA and Adjusted EBITDA as a percent of net sales provide management, investors and creditors with useful measures of the operational results of our business and increase the period-to-period comparability of our operating profitability and comparability with other companies. Adjusted EBITDA as a percent of net sales is also used in the calculation of management's incentive compensation program. The most directly comparable GAAP measure to Adjusted EBITDA is Net income. The most directly comparable GAAP measure to Adjusted EBITDA as a percent of net sales is Net Income as a percent of net sales. Adjusted EBITDA is calculated as the earnings before interest expense, net, income tax expense, amortization of intangible assets, depreciation of property, plant and equipment and other adjustments as defined by Allison Transmission, Inc.'s, the Company's wholly-owned subsidiary, Second Amended and Restated Credit Agreement. Adjusted EBITDA as a percent of net sales is calculated as Adjusted EBITDA divided by net sales.
We use Adjusted Free Cash Flow to evaluate the amount of cash generated by our business that, after the capital investment needed to maintain and grow our business and certain mandatory debt service requirements, can be used for repayment of debt, stockholder distributions and strategic opportunities, including investing in our business. We believe that Adjusted Free Cash Flow enhances the understanding of the cash flows of our business for management, investors and creditors. Adjusted Free Cash Flow is also used in the calculation of management's incentive compensation program. The most directly comparable GAAP measure to Adjusted Free Cash Flow is Net cash provided by operating activities. Adjusted Free Cash Flow is calculated as Net cash provided by operating activities, after additions of long-lived assets.
Attachments
- Condensed Consolidated Statements of Operations
- Condensed Consolidated Balance Sheets
- Condensed Consolidated Statements of Cash Flows
- Reconciliation of GAAP to Non-GAAP Financial Measures
- Reconciliation of GAAP to Non-GAAP Financial Measures for Full Year Guidance
Allison Transmission Holdings, Inc. | ||||||||
Condensed Consolidated Statements of Operations | ||||||||
(Unaudited, dollars in millions, except per share data) | ||||||||
Three months ended December 31, |
Years ended December 31, | |||||||
2024 | 2023 | 2024 | 2023 | |||||
Net sales | $ 796 | $ 775 | $ 3,225 | $ 3,035 | ||||
Cost of sales | 423 | 404 | 1,696 | 1,565 | ||||
Gross profit | 373 | 371 | 1,529 | 1,470 | ||||
Selling, general and administrative | 84 | 92 | 337 | 357 | ||||
Engineering - research and development | 54 | 54 | 200 | 194 | ||||
Operating income | 235 | 225 | 992 | 919 | ||||
Interest expense, net | (21) | (24) | (89) | (107) | ||||
Other (expense) income, net | (4) | 5 | (6) | 15 | ||||
Income before income taxes | 210 | 206 | 897 | 827 | ||||
Income tax expense | (35) | (36) | (166) | (154) | ||||
Net income | $ 175 | $ 170 | $ 731 | $ 673 | ||||
Basic earnings per share attributable to common stockholders | $ 2.03 | $ 1.91 | $ 8.40 | $ 7.48 | ||||
Diluted earnings per share attributable to common stockholders | $ 2.01 | $ 1.91 | $ 8.31 | $ 7.40 | ||||
Allison Transmission Holdings, Inc. | ||||||||
Condensed Consolidated Balance Sheets | ||||||||
(Unaudited, dollars in millions) | ||||||||
December 31, | December 31, | |||||||
2024 | 2023 | |||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | $ 781 | $ 555 | ||||||
Accounts receivable, net | 360 | 356 | ||||||
Inventories | 315 | 276 | ||||||
Other current assets | 82 | 63 | ||||||
Total Current Assets | 1,538 | 1,250 | ||||||
Property, plant and equipment, net | 803 | 774 | ||||||
Intangible assets, net | 822 | 833 | ||||||
Goodwill | 2,075 | 2,076 | ||||||
Other non-current assets | 98 | 92 | ||||||
TOTAL ASSETS | $ 5,336 | $ 5,025 | ||||||
LIABILITIES | ||||||||
Current Liabilities | ||||||||
Accounts payable | $ 212 | $ 210 | ||||||
Product warranty liability | 31 | 32 | ||||||
Current portion of long-term debt | 5 | 6 | ||||||
Deferred revenue | 41 | 41 | ||||||
Other current liabilities | 217 | 212 | ||||||
Total Current Liabilities | 506 | 501 | ||||||
Product warranty liability | 36 | 27 | ||||||
Deferred revenue | 95 | 89 | ||||||
Long-term debt | 2,395 | 2,497 | ||||||
Deferred income taxes | 501 | 519 | ||||||
Other non-current liabilities | 152 | 159 | ||||||
TOTAL LIABILITIES | 3,685 | 3,792 | ||||||
TOTAL STOCKHOLDERS' EQUITY | 1,651 | 1,233 | ||||||
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | $ 5,336 | $ 5,025 | ||||||
Allison Transmission Holdings, Inc. | |||||||||||||
Condensed Consolidated Statements of Cash Flows | |||||||||||||
(Unaudited, dollars in millions) | |||||||||||||
Three months ended December 31, |
Years ended December 31, | ||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||
Net cash provided by operating activities | $ 211 | $ 238 | $ 801 | $ 784 | |||||||||
Net cash used for investing activities (a) | (77) | (58) | (147) | (129) | |||||||||
Net cash used for financing activities | (140) | (127) | (427) | (332) | |||||||||
Effect of exchange rate changes on cash | (1) | 1 | (1) | - | |||||||||
Net (decrease) increase in cash and cash equivalents | (7) | 54 | 226 | 323 | |||||||||
Cash and cash equivalents at beginning of period | 788 | 501 | 555 | 232 | |||||||||
Cash and cash equivalents at end of period | $ 781 | $ 555 | $ 781 | $ 555 | |||||||||
Supplemental disclosures: | |||||||||||||
Income taxes paid | $ (40) | $ (30) | $ (190) | $ (194) | |||||||||
Interest paid | $ (33) | $ (36) | $ (124) | $ (131) | |||||||||
Interest received from interest rate swaps | $ 2 | $ 4 | $ 12 | $ 12 | |||||||||
(a) Additions of long-lived assets | $ (75) | $ (52) | $ (143) | $ (125) | |||||||||
Allison Transmission Holdings, Inc. | ||||||||||||
Reconciliation of GAAP to Non-GAAP Financial Measures | ||||||||||||
(Unaudited, dollars in millions) | ||||||||||||
Three months ended | Years ended | |||||||||||
December 31, | December 31, | |||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||
Net income (GAAP) | $ 175 | $ 170 | $ 731 | $ 673 | ||||||||
plus: | ||||||||||||
Income tax expense | 35 | 36 | 166 | 154 | ||||||||
Depreciation of property, plant and equipment | 29 | 28 | 111 | 109 | ||||||||
Interest expense, net | 21 | 24 | 89 | 107 | ||||||||
Amortization of intangible assets | 2 | 12 | 10 | 45 | ||||||||
Stock-based compensation expense (a) | 6 | 5 | 26 | 22 | ||||||||
UAW Local 933 contract signing incentives (b) | - | - | 14 | - | ||||||||
Unrealized loss on marketable securities (c) | 1 | 2 | 9 | 1 | ||||||||
Pension plan settlement loss (d) | - | - | 4 | - | ||||||||
Technology-related investments loss (gain) (e) | 1 | - | 2 | (3) | ||||||||
Other (f) | - | - | 3 | - | ||||||||
Adjusted EBITDA (Non-GAAP) | $ 270 | $ 277 | $ 1,165 | $ 1,108 | ||||||||
Net sales (GAAP) | $ 796 | $ 775 | $ 3,225 | $ 3,035 | ||||||||
Net income as a percent of Net sales (GAAP) | 22.0 % | 21.9 % | 22.7 % | 22.2 % | ||||||||
Adjusted EBITDA as a percent of Net sales (Non-GAAP) | 33.9 % | 35.7 % | 36.1 % | 36.5 % | ||||||||
Net cash provided by operating activities (GAAP) | $ 211 | $ 238 | $ 801 | $ 784 | ||||||||
Deductions to reconcile to Adjusted free cash flow: | ||||||||||||
Additions of long-lived assets | (75) | (52) | (143) | (125) | ||||||||
Adjusted free cash flow (Non-GAAP) | $ 136 | $ 186 | $ 658 | $ 659 | ||||||||
(a) | Represents stock-based compensation expense (recorded in Cost of sales, Selling, general and administrative, and Engineering — research and development). |
(b) | Represents non-recurring incentives (recorded in Cost of sales, Selling, general and administrative, and Engineering — research and development) to eligible employees as a result of International Union, United Automobile, Aerospace and Agricultural Implement Workers of America ("UAW") Local 933 represented employees ratifying a four-year collective bargaining agreement effective through November 2027. |
(c) | Represents losses (recorded in Other (expense) income, net) related to an investment in the common stock of Jing-Jin Electric Technologies Co. Ltd. |
(d) | Represents a non-cash settlement charge (recorded in Other (expense) income, net) for a pro rata portion of previously unrecognized pension plan actuarial net losses associated with the pension risk transfer of a portion of our salaried defined benefit pension plan obligations to a third-party insurance company. |
(e) | Represents losses (gains) (recorded in Other (expense) income, net) related to investments in co-development agreements to expand our position in propulsion solution technologies. |
(f) | Represents other adjustments as defined by the Second Amended and Restated Credit Agreement dated as of March 29, 2019 as amended. |
Allison Transmission Holdings, Inc. | |||||
Reconciliation of GAAP to Non-GAAP Financial Measures for Full Year Guidance | |||||
(Unaudited, dollars in millions) | |||||
Guidance | |||||
Year Ending December 31, 2025 | |||||
Low | High | ||||
Net income (GAAP) | $ 735 | $ 785 | |||
plus: | |||||
Income tax expense | 185 | 195 | |||
Depreciation of property, plant and equipment | 123 | 123 | |||
Interest expense, net | 91 | 91 | |||
Amortization of intangible assets | 7 | 7 | |||
Stock-based compensation expense (a) | 29 | 29 | |||
Adjusted EBITDA (Non-GAAP) | $ 1,170 | $ 1,230 | |||
Net cash provided by operating activities (GAAP) | $ 800 | $ 860 | |||
Deductions to reconcile to Adjusted free cash flow: | |||||
Additions of long-lived assets | $ (165) | $ (175) | |||
Adjusted free cash flow (Non-GAAP) | $ 635 | $ 685 | |||
(a) | Represents stock-based compensation expense (recorded in Cost of sales, Selling, general and administrative, and Engineering — research and development). |
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SOURCE Allison Transmission Holdings Inc.
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